Roku Inc. (NASDAQ:ROKU) shares remained lower in pre-market trading on Thursday after a disappointing 2018 forecast sent shares tumbling after-hours on Wednesday.
The Nasdaq-listed streaming service provider saw its shares drop nearly 20% on Wednesday after it forecast losses of between US$40mln to US$55mln for 2018, far exceeding analysts' forecasts for a US$35.9mln loss.
READ: Roku soars after demonstrating strong top-line growth
Those disappointing estimates overshadowed numbers showing Roku posted its second quarterly profit on record, with net income of US$6.9mln in the fourth quarter, outstripping analysts’ expectations for a US$9.8mln quarterly loss.
The group's full-year revenue also rose to US$188.3mln, up from US$147.3mln in 2016, again beating analysts' forecasts for US$182.5mln.
Roku's chief executive Anthony Wood said in a letter to shareholders that the company had generated positive full-year operating cash flow for the first time.
Looking forward to 2018, he added: “Our profitability goal for the year is to operate our business at, or near, break-even on an operating cash flow basis while we reinvest gross profit into strategic areas that can drive continued long-term growth,”.
In pre-market trading on Thursday, Roku shares were down another 18% at US$41.66.